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U.S. natural gas consumption projected to hit record high in 2025

Jack Burke Senior Editor, Compressor Tech2

August 25, 2025

EIA: Residential and commercial demand offsets lower power sector usage

U.S. natural gas consumption is forecast to rise 1% in 2025, setting a record of 91.4 billion cubic feet per day (Bcf/d), according to the latest Short-Term Energy Outlook from the U.S. Energy Information Administration (EIA). The increase comes despite a slowdown in power-sector demand, which had been the primary driver of consumption growth over the past decade.

Natural gas use surged early in the year, fueled by colder-than-average winter temperatures and a polar vortex event in mid-January. U.S. consumption reached a record 126.8 Bcf/d in January—5% higher than the previous record set in January 2024. February consumption also climbed to 115.9 Bcf/d, up 5% from the previous February high set in 2021, EIA data show.

Heating demand drives early-year highs

Consumption typically peaks in January and February, when demand for residential and commercial space heating is at its highest. According to U.S. Census Bureau data, 45% of American homes rely on natural gas as their primary heating fuel.

EIA analysts noted that these early winter gains largely underpin the agency’s full-year forecast. “The colder weather this year significantly boosted heating-related consumption,” the agency reported.

Power sector demand declines

Despite strong heating demand, natural gas use in the electric power sector has declined compared with last year. Gas remains the dominant fuel for U.S. electricity generation, but its share of the generation mix has eroded in 2025 as coal, solar, and wind gained ground.

EIA estimates natural gas consumption fell during the spring and summer compared to the same periods in 2024, reflecting both the rise in renewable generation and seasonal demand patterns.

Outlook for 2026

The EIA expects residential and commercial sector demand to offset most of the losses in power sector consumption this year. However, the agency forecasts a slight decline in overall U.S. natural gas consumption in 2026, citing anticipated milder winter weather and lower heating demand.